FTX Cryptocurrency Exchange Today announced on Twitter filing for bankruptcy in the United States. Its CEO Sam Bankman-Fried resigns from his position. The Cyprus Securities and Exchange Commission announced shortly after that it had suspended the company’s license to operate in the European Union to protect investors. The FTX crash could therefore be one of the biggest in the cryptocurrency industry.
The announcement comes just days after biggest rival Binance pulled out of a plan to take over the FTX exchange, leaving it to raise around $ 9.4 billion from investors and competitors to save itself. FTX needed help because it started running out of cash when its clients started withdrawing their money.
The company said FTX, its Alameda Research affiliated cryptocurrency trading fund, and about 130 other companies have filed for voluntary bankruptcy under the United States Bankruptcy Code. John J Ray III became the new CEO of the group. Bankman-Fried, whose fortune according to Forbes magazine two months ago was $ 17 billion, has resigned. But it will help with bankruptcy procedures.
The causes of FTX problems arose several months ago. According to a Reuters source, the head of this cryptocurrency exchange has transferred at least four billion dollars to Alameda to support the business after a series of losses. The FTX problems have hit the Bitcoin and other cryptocurrency market hard in the past few days.
